Ithaca Energy Joins London's FTSE 100 Index

Ithaca Energy, a company in which Delek Group holds a significant stake alongside Italian energy giant ENI, is set to be included in the FTSE 100 index, London's premier stock market benchmark. The decision was confirmed by FTSE Russell during its quarterly index review, with Ithaca and easyJet replacing Entain and Persimmon. These changes will take effect at the market close on September 18th and become active on September 21st.

The inclusion of Ithaca in the FTSE 100 is a notable development for Delek Group, as a substantial portion of its current valuation relies on its international operations and subsidiaries, particularly Ithaca and NewMed Energy. For Ithaca itself, this move carries more than just symbolic weight. Its entry into the index will necessitate index-tracking funds and ETFs to adjust their holdings, potentially creating technical demand for the stock leading up to the effective date. It could also broaden the company's exposure to international institutional investors and fund managers who use the index as a benchmark.

This advancement follows a period of significant expansion for Ithaca in the North Sea, notably the integration of ENI's UK oil and gas assets into the company. This transaction bolstered Ithaca's asset base and production, establishing ENI as a key shareholder alongside Delek Group. For Delek, this represents a continuation of a strategy that began with its acquisition and subsequent relisting of Ithaca in London, transforming it from a core asset into a major, independent energy company in the British market.

Ithaca's market capitalization, estimated at approximately £4.5 billion prior to the index review, was a crucial factor in its eligibility for the FTSE 100. The index's inclusion criteria are based on market capitalization rankings, meaning Ithaca's growth relative to other London-listed companies was instrumental. Concurrently, Ithaca continues to return substantial cash flow to shareholders, increasing its 2026 dividend forecast to $500-530 million after distributing around $1 billion for 2024 and 2025, and already declaring an interim dividend of $255 million for the first half of the year. For Delek Group, this strengthens its primary overseas asset and could improve Ithaca's stock liquidity and investor base, factors that influence how the market values Delek's stake.